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Natwest mortgage repayment
KingHenryVIII
Posts: 42 Forumite
Hi All,
about to buy our first home (currently in rented). Now, with the rented property our rent payments were in advance, I believe that mortgage payments are always in arrears, is this correct?
If this is so does that mean that if we complete on say 29th June, our last rent payment will be May 31st (for June's rent) and our first mortgage payment will be the a month after drawdown, 1st August.
have I got this right or am I being stooped!?
Thanks,
The King
about to buy our first home (currently in rented). Now, with the rented property our rent payments were in advance, I believe that mortgage payments are always in arrears, is this correct?
If this is so does that mean that if we complete on say 29th June, our last rent payment will be May 31st (for June's rent) and our first mortgage payment will be the a month after drawdown, 1st August.
have I got this right or am I being stooped!?
Thanks,
The King
0
Comments
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Some lenders collect in advance, notably building societies and former building societies.
Clearing banks normally collect in arrears.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
Thanks, do you know what Natwest do?0
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Arrears from memory, doesn't really matter.The J is a Financial Advisor-This site doesn't check anyone's status and as such any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Always seek professional advice.0
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So the timescale of repayments in my original post makes sense??0
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It often depends on the payment date you choose, how quickly the direct debit is set up etc. The first payment could be a double payment but you won't be losing any money by doing it that way rather than another way if that is what you are worried about.The J is a Financial Advisor-This site doesn't check anyone's status and as such any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Always seek professional advice.0
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Double payment? Wouldn't that mean they would be taking a single payment in arrears & advance??
If the mortgage is drawn down (completed) on say the 29th June why would they take a double payment on say the 1st Aug as this would be arrears & advance??0 -
In that instance it wouldn't be double but it would be slightly higher than normal because there would be a couple of days extra interest.
Are you worried about cashflow?The J is a Financial Advisor-This site doesn't check anyone's status and as such any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Always seek professional advice.0 -
Who isn't!
No not really but I'm a bit OCD about knowing in advance when things are due to be paid.0 -
There are a lot of variables. Usually the bank will send you a letter after you complete outlining what they will take.The J is a Financial Advisor-This site doesn't check anyone's status and as such any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Always seek professional advice.0
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If I remember orrectly my first mortgage payment was a couple of hundred more. Was a bit of a surprise!!0
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